ASIC warning: Pump and dump scammers intensify use of fake celebrity endorsements

ASIC is warning Australians to be extremely cautious of investment tips received through social media and messaging apps, amid a spike in reports of pump and dump scams using fake celebrity endorsements and impersonations of financial institutions.

ASIC has observed scammers using the identities and images of well-known finance industry figures, including respected market commentators and economists, to lure consumers into WhatsApp and other messaging groups where they are encouraged to buy investments, particularly shares.

Once consumers join a messaging group, scammers provide stock tips designed to artificially inflate the price of a share before selling their own holdings before the share price falls and leaving unsuspecting investors with significant losses.

ASIC Chair Sarah Court said pump and dump scams continue to cause substantial harm to Australian investors.

'These scams are becoming increasingly sophisticated, and scammers are exploiting the trust Australians place in recognised experts, financial institutions and investment brands by faking their platforms and endorsements,' she said.

'If you're receiving stock tips through WhatsApp, Telegram or another messaging service, particularly after responding to a social media post, you should assume it's a scam.

'The reality is that legitimate investment opportunities do not come from strangers on messaging apps, pressuring you into buying shares.'

Scammers target consumers with celebrity impersonations

ASIC has identified that scammers are increasingly using fake celebrity endorsements of prominent economists and financial commentators in social media posts,

ASIC Commissioner Alan Kirkland says older Australians appear to be a main target of these scams.

'We suspect scammers are deliberately targeting Australians nearing retirement because they know many people in this age group have accumulated retirement savings and are looking for investment opportunities,' he said.

'Scams are becoming more sophisticated and harder to spot, including the use of AI-generated deep-fake videos of well-known personalities.'

How the scam works

ASIC has identified a common pattern:

1. A consumer sees an investment opportunity posted on social media.
2. The post uses the image of a well-known commentator, investor or financial institution to build credibility. The opportunity is actually fraudulent, generated by the scammers.
3. The consumer clicks the post and is directed to a messaging platform such as WhatsApp.
4. A scammer posing as the impersonated expert or their 'assistant' provides stock recommendations, primarily on foreign exchanges.
5. Other members of the group who pose as investors, but are often part of the scammer's team, post messages about their supposed profits and past success following these tips to create credibility and encourage participation.
6. Consumers purchase the recommended shares, causing the share price to rise. Scammers often ask for screenshots or proof of purchase.
7. The scammers suddenly sell their existing holdings at the inflated price, causing the share price to collapse.
8. Consumers are left holding shares that are worth significantly less than what they paid.

One recent example saw a share price rise rapidly to almost US$11 before falling to US$1 soon after. The sudden collapse illustrates how quickly investors can lose money when manipulators dump their holdings into an artificially inflated market.

Real shares, real losses

Unlike many investment scams - where victims' funds are transferred directly to criminals - pump and dump schemes often involve the purchase of genuine shares traded on real financial exchanges, through legitimate brokerage accounts.

Commissioner Kirkland said this can make the scam particularly convincing.

'Many victims don't realise they're being scammed because they genuinely own the shares they've purchased,' he said.

'The loss occurs when the scammers sell out and the share price collapses. Investors are left holding shares worth a fraction of what they paid.

'Just because you can see shares in your trading account doesn't mean the investment recommendation was legitimate.'

According to the National Anti-Scam Centre's latest Targeting Scams Report, Australians lost $2.18 billion to scams in 2025, including $837.7 million to investment scams alone.

The financial sector's role in scam prevention

Ms Court says financial institutions have an important responsibility to identify and respond to suspicious transaction patterns linked to investment scams and market manipulation.

'Australians expect their banks and financial service providers to remain vigilant to scam activity and take appropriate steps to help protect customers from harm,' she said.

How to protect your money

Pump and dump scams can look very convincing. They create a sense of urgency, a feeling of having special information, and a fear of missing out on a great investment opportunity. Before investing any money, check the basic facts about what you're investing in and who with.

Protect yourself

Investment scams can have serious financial and emotional consequences. If you or someone you know has been affected and needs support, contact Lifeline on 13 11 14, Beyond Blue on 1300 22 4636, or seek support from a health professional.

Background

ASIC continues to work with domestic and international regulators to identify the individuals and groups behind pump and dump schemes.

Where perpetrators are located in Australia, ASIC pursues enforcement outcomes, including seeking criminal prosecutions where appropriate.

In December 2025, four co-conspirators who used Telegram app group chats to pump up the share prices of Australian stocks before dumping them at inflated prices were convicted and sentenced to terms of imprisonment (25-315MR).

The four ringleaders of the 'pump and dump' scheme pleaded guilty in June 2025 to conspiracy to commit market rigging and dealing with the proceeds of crime (25-098MR).